As a representative of a small or medium business, one of your core responsibilities is to ensure the VAT readiness of your organization.
The following four-step guide details all the requirements for VAT readiness. If at any time you require more information or assistant in the VAT readiness process
Further detailing of the readiness steps
VAT
Law and Implementing Regulations
- Develop a detailed
understanding of VAT
- Determine the tax policies
of goods to be sold (5%, zero-rated, or exempt).
- Designate a point of
contact in the company to deal with ZATCAon matters related to VAT
Accounting
system and Chart of Accounts
- Establish a system for
recording and archiving invoices
- Determine the VAT details
of suppliers
Technical
solutions
- Set in place a consistent
means of display for the price of goods (all VAT inclusive)
- Issue sales receipts
compliant with VAT requirements
- Align a system to record
sales with VAT management requirements
- ZATCA has engaged with
a set of PoS and accounting software providers. These solutions will support
SMEs in implementing VAT
VAT
registration and return filing
- Set in place a record
keeping and account practices which address VAT requirements
- Set in place the ability to
assess VAT balance
- Establish the ability to
pay VAT balance
As a small or medium business, you have a variety of ways to find out about your VAT readiness status. The Zakat, Tax and Customs Authority (ZATCA) is committed to supporting you during this process to ensure your businesses are ready.
In addition to direct communications addressed to you (emails, SMS, letters, etc.), the following link